Budget 2023-24: Rs2,250b allocated for agriculture sector

ISLAMABAD: The federal government has announced increased allocations for the agriculture sector from Rs1,800 billion to Rs2,250 with the apportionment for the solarisation of tube-wells, tax and duty-free imports of quality seeds and loan scheme in the budget 2023-24, ARY News reported on Friday.

Finance Minister Ishaq Dar unveiled the federal budget 2023-24 today with the total volume of Rs14,460 billion. During his budget, Dar noted that the agriculture sector is the backbone of our country’s economy. Along with other measures, the government has increased the agricultural loans to Rs2,250 billion from Rs1,800 billion.

He announced that Rs30 billion has been allocated to shift 50,000 agricultural tube-wells will be shifted to solar energy. Moreover, all taxes and duties have been removed from the import of quality seeds. Dar added that food processing units will also be tax-free.

READ: Ishaq Dar unveils federal budget for FY 2023-24 with total outlay of 14.5tr

“Rs10 billion has been allocated for business and agricultural loan scheme, while Rs6 billion for import of fertilizers,” he added.

Dar announced that the government has removed all “taxes and duties” on machinery used to increase rice production while taxes on the import of saplings have also been removed.

Under relief measures, the government made a two-year extension for the purpose of concessionary tax rate of 20% for banking company’s income from additional advances to low cost housing, agriculture, and SMEs including IT & ITeS.

Additionally, the government decided to encourage export of commodities i.e. agriculture production, gems, metals and others through online platform by providing 1% concessionary final tax rate to indirect exporters.